# EUR-Lex - 52013DC0253 - EN

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# 52013DC0253

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Energy Technologies and Innovation /* COM/2013/0253 final */**

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COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

Energy Technologies and Innovation

1.           INTRODUCTION

Technology and innovation are crucial to
all our energy challenges...

The EU needs to do more to bring new, high
performance low-cost, low-carbon sustainable energy technologies to the market.
New technologies are vital to achieve all of the EU 2020 objectives[1]
in energy, climate, economic and social policy, as well as those for 2030 and
2050. The EU must have a strong and dynamic technology and innovation strategy
both to deliver its policy goals strengthen its competitiveness and to better
coordinate investments.

... complementing EU energy legislation

EU policies on the internal energy market,
energy efficiency and renewables support technologies onto the market, from Photovoltaic
(PV) panels to efficient appliances, smart meters or home automation. The EU
needs to further reinforce the role of technology and innovation within energy
policy, not just with specific technologies, but also by triggering new
business models, market and social adaptation and energy system improvements that
offer a longer term strategic perspective for investments.

....in a constantly evolving energy
landscape

As a result of EU policies, global
investments in renewables have progressed steadily requiring a greater flexibility
and energy management. The phasing out of nuclear power in some countries and the
rapid expansion of unconventional gas production is changing the economics of
energy worldwide. To support European industrial competitiveness the EU’s
energy technology and innovation policy needs to deliver on reducing costs
rapidly and speeding up the introduction of new sustainable technologies to the
market. This is particularly important in a time of economic downturn which has
direct consequences on private investments and national budgets.

2.           WHAT HAS THE EU ACHIEVED?

2.1.        Legislation has pulled
technology and innovation onto the market

The EU internal energy market helps to
create open and competitive markets where industry players invest in new and
innovative technologies and services. The scale of the internal energy market
provides the space for market forces to stimulate technological development and
innovation. This is supported by efforts to modernise, integrate and expand
grid infrastructure up to 2020 and beyond, notably for electricity. The EU has
identified 12 priority corridors, among others to integrate more wind and solar
electricity while ensuring uninterrupted supply. The technical rules being
developed for the internal market (i.e. network codes) focus on the integration
of technologies in response to the changing energy system. As part of this work
Transmission System Operators (TSO) are developing new modelling methods and
smarter grid operation tools. Making consumers active players in an integrated
energy market, means that EU policy is also driving the development of
"smart" and IT-related technologies, such as smart metering, electric
cars, demand response, micro-generation and local storage technologies to allow
for flexible demand and better control of consumption.

To meet the 2020 goals, EU energy policy
supports a shift to low carbon generation technologies. Spurred by the
Renewable Energy Directive and support in Member States there has been a strong
growth in renewables and significant reductions in cost. As part of the
transition to a low carbon energy system, EU policy has pushed Carbon Capture
and Storage (CCS) technologies and a safer nuclear energy generation.

Through EU energy efficiency policy and
legislation, including the Energy Efficiency and Eco-design Directives,
technologies are being rolled out onto the market. In parallel, sectoral energy
efficiency legislation on eco-design is pulling the development and deployment
of energy efficient appliances (e.g. boilers, washing machines, TVs, computers)
and brings energy savings to consumers. In the buildings sector, EU legislation
promotes energy efficient building renovation and the construction of
nearly-zero energy buildings. In the transport sector, low emission and
electric vehicles are encouraged.

The EU Emission Trading System and the
Effort Sharing Decision have made the Green House Gas (GHG) emissions price
part of EU business operational and investment decisions and has contributed to
substantial emissions reductions but it's role as a major driver towards long
term low carbon investments is being questioned due to the low and volatile carbon
price signal it has produced in response to the crisis.

2.2.        Improving framework
conditions for research and innovation

The Innovation Union set out an integrated
research and innovation strategy, improving public funding and tackling the
barriers that hold back private investment. Significant progress has been made
to improve framework conditions, including unitary patent protection (dramatically
reducing patent costs), an effective EU-wide venture capital regime, and modernising
public procurement rules. The European Research Area is improving the impact of
  Member State research funding and the framework conditions for researchers,
including by better aligning funding from different Member States, improving
researchers’ careers and mobility and giving researchers access to world-class
scientific infrastructures.

2.3.        The SET Plan - driving the
EU 7th Framework Programme for Research

The EU's Strategic Energy Technology (SET)
Plan was established in 2008 as the technology push framework of the EU's energy
and climate policies. It is based on a three pillar implementation structure: a
Steering Group, European Industrial Initiatives (EIIs) and the European Energy
Research Alliance (EERA) and is supported by an information system (SETIS) [2].
The Steering Group on Strategic Energy Technologies has
enabled a structured dialogue with Member States resulting
in increased alignment of national energy research and
innovation policies and has promoted a move towards joint actions to deliver
common objectives with greater speed and effectiveness.

The SET Plan prioritised those technologies
most relevant to the energy and climate policy objectives for 2020: wind,
solar, electricity networks, CCS, bioenergy, nuclear, fuel cells and hydrogen,
energy efficiency. The EIIs set-up for all these sectors have defined priority
research and innovation areas through Technology Roadmaps including a dedicated
roadmap on materials[3] and focused their action
on large projects of European value. Through the EERA national research capacities
are pooled to develop new solutions that will impact beyond 2020.

European funds have been made available,
primarily under the 7th Research Framework Programme (FP7) through
the mobilisation of different parts such as Energy and Key Enabling Technologies
(e.g. ICT and Materials). From 2007 to 2012, the FP7 Energy Theme supported
with some €1.8 billion about 350 projects. FP7 has also provided substantial
support through public private partnerships and financial instruments (see
below). In addition, support at the level of the EU has been provided through
the European Institute of Innovation and Technology (EIT) and its Knowledge and
Innovation Community InnoEnergy. Substantial additional funding came from
European Energy Programme for Recovery (EEPR) as well as the from New Entrance Reserve
(NER) 300 Programme. Public and private investments in technological
development for the SET Plan sectors increased from € 3.2 billion in 2007 to € 5.4
billion in 2010[4] (Figure1). Today industry
makes about 70% of the total research and innovation investment in the SET Plan
priorities while Member States account for about 20% and the European
Commission for 10%.

Figure 1 Estimate
of public and corporate R&D investments in 2010 by technology and by source
(JRC/SETIS)[5]

As a result of these efforts, important
achievements in technological developments and cost reduction have been made
for SET Plan technologies.

Over the last two decades Photovoltaic (PV)
system prices have decreased all over the world, significantly driven by
technology and market developments. The cost of PV modules decreased sharply
(by 3 times in two years)[6]. The SET Plan target of 1
€/kW[7]
by 2030 may be a reality by 2020 thus significantly reducing the costs for society.

Wind power (mainly on-shore) already
contributes a significant share of energy generation: 106 GW of wind capacity
installed at the end of 2012 generated 210 TWh or 7% of European electricity
production[8]. Annual turnover of major
wind equipment suppliers reached €20 billion in 2012. Whilst wind is a global
market, it has a strong local influence: turbine manufacturer’s worldwide market
share depends strongly on how their home market performs. EU
efforts also continue with offshore wind applications where the technology is
still improving and cost are decreasing.

In the transport sector, EU efforts focus
on reaching 10% of energy consumption from renewables, in particular through alternative
fuels. To address indirect land use change (ILUC), the Commission proposed that
no more than half of the 10% target should be achieved with conventional biofuels,
increasing the demand for advanced biofuels to 6 Mtoe or 15 plants, each with
an annual capacity of 100 Ktoe. A positive start has been made with FP7 funding
9 large scale lignocelluloses biofuel demonstration projects with capacities of
40 to 80 thousand tonnes per year.

2.4.        Intelligent Energy Europe (IEE) programme

Since 2007, the innovation programme
Intelligent Energy in Europe (IEE) has promoted the market uptake of
technologies and tackled non-technological barriers (financial, regulatory and
administrative). The programme focused on energy efficiency and renewable
energy. It has, through more than 300 projects, triggered over €4 billion of
related investment in all end-use sectors, including transport.

IEE has led to mainstreaming new business
models that leverage private financing. An example of such business model is
Energy Performance Contracting (EPC), where the initial investment in energy
saving measures is re-paid by the cost savings from higher energy efficiency.
IEE has so far replicated this business model in 10 Member States including some
where the concept was largely unknown.

IEE has also established co-operation with
financial institutions to successfully mobilise investments of around €2
billion (with €38 million EU funding) into sustainable energy through its
Project Development Assistance Facilities (ELENA[9] and Mobilising
Local Energy Investment). The programme has pioneered support to "energy
transformation" actors such as local and regional authorities, schools,
hospitals and social housing as well as addressing the needs of practitioners
through training and information provision. Investments are expected to
generate energy savings of more than 2000 GWh/year.

Through its Build-up Skills initiative, the
programme is addressing practitioners' needs to build nearly zero-energy
buildings across the EU. In the area of energy intensive industries, the CARE+
project mobilised SMEs in the chemical industry to achieve energy savings of
between 10-20%.

2.5.        Public-Private
Partnerships and Joint Undertaking

Supported under FP7, the Fuel Cells and
Hydrogen Joint Undertaking (FCH JU) has enabled the implementation of an
industry-led programme of research and demonstration activities covering both
transport and stationary power applications. The €380 million in grants
allocated to date has brought closer to market a variety of applications (e.g.
material handling vehicles, back-up power systems) while reducing costs and
improving the efficiency and the lifetime of the applications.

The research oriented Public-Private
Partnerships (PPPs) on energy efficiency in buildings and on factories of the
future, as well as on green cars, brought together the stakeholders in each of
these sectors to forge a common agenda and channel EU funding towards their
objectives. From 2009 to 2012, €1.6 billion was committed by the EU, matched by
a similar level of private sector investments. The PPPs have been successful in
attracting strong participation of SMEs.

2.6.        Improving access to debt
financing - Risk Sharing Finance Facility (RSFF)

Under FP7, the RSFF is supporting the
European Investment Bank (EIB) in providing some €10 billion of loan
commitments (with €1 billion of EU contribution) to attract more than €20
billion of research and innovation investments, mainly by large firms and mid-caps
companies. The RSFF encourages project promoters to undertake research and
innovation activities associated with a high degree of risk. From 2009 to 2012,
the energy sector has accounted for 14-18% of the RSFF portfolio, including
major first-of-a-kind investments in solar and wind and investments to improve
energy efficiency, particularly in the automotive sector.

2.7.        Regional Dimension –
support from cohesion policy

Within the cohesion policy budget
significant funding is dedicated to sustainable energy, with over € 10 billion
planned for investment in energy efficiency and renewables in the 2007-2013
programming period. One such example is the Wave Hub project in South West
England, aiming to create the world’s largest test site for devices that generate
electricity from the power of waves. Another example is the Green Buildings
Cluster project of Lower Austria, which connects construction and building
professionals with researchers to address challenges such as climate change and
enables innovation through cooperation.

2.8       Assessment of EU the energy
technology and innovation framework

Europe is on the
right track to foster the development of energy technologies and creating the
right conditions for innovation, but much remains to be done.

The rapidly evolving energy landscape requires
a system approach and responsiveness to new developments. Both the evaluation
of the SET plan implementation[10] and the public consultation[11]
conducted in support of this Communication confirm that the SET Plan needs increased
focus on energy system integration, integration of activities along the
innovation chain, and increased coordination of the EIIs and EERA to support
this. Further industrial supply chain developments need to increase, while a
stronger coordination of actors and investments along the research and
innovation chain is needed to accelerate development and market uptake.

In addition, although Member States do share
common industrial and research objectives, their commitment to the SET Plan is
currently suboptimal. Coordinated and/or joint investments between Member
States and with the EU need to be fostered to leverage private sector
investments in support of the EIIs Technology Roadmaps and the EERA Joint
Programmes. Similarly, a clear commitment from industrial partners needs to be
ensured including in PPPs based on a shared vision and clearly defined
objectives, while research capacities under the EERA need to be more integrated
to accelerate the delivery of results with stronger links to industry.

An external evaluation of the IEE programme
in 2011[12] concluded that it has a
crucial role in developing service innovation, knowledge and capacity building
and new business models that leverage private financing for the roll-out of energy
efficiency and renewable technologies to the market. Building upon this
successful example, measures supporting the market uptake of energy innovation
need to be expanded to other energy policy areas and should be more strongly
linked to the Structural and Cohesion Funds.

In a similar vein, the interim evaluation
of the FCH JU[13] recommended a stronger
focus on applied research and larger-scale demonstration activities linked to
energy system needs, such as the use of hydrogen to store renewable
electricity.

These highlight the need for an integrated
research and innovation chain at EU level that spans from basic research to
market roll-out.

3.           ENERGY TECHNOLOGY AND INNOVATION
STRATEGY TO 2020 AND BEYOND

The European energy technology and
innovation strategy needs to accelerate innovation in cutting edge low carbon
technologies and innovative solutions, and bridge the gap between research and
the market. This is clearly recognised in the Commission's proposals for
Horizon 2020, which bring together EU support for research and innovation (including
the successors to the current FP7 and IEEII programmes and further support to
the EIT) under a simplified framework. However, EU funding remains a limited
part of the overall funding across Europe, and the key principles and developments
need to be reflected equally in private sector and Member State investments.
Implementation needs to be increasingly based on partnerships that build the
necessary scale and scope, and achieve greater impact from scarce public and
private resources.

3.1.        Key principles

Adding value at the EU level

EU intervention needs to focus on where it
can really add value. It should concentrate on large-scale efforts which go
beyond what Member States can achieve alone or bilaterally, promoting
innovation through regulation and financing. It should support research and
innovation capacity building to accelerate developments, and generate economies
of scale.

Looking at the whole energy system
when setting priorities

The development of energy technologies
should be seen from the perspective of delivering cost-effective energy
services to final customers: light, heat, cooling, clean transport etc.
Individual technological developments should be assessed for their integration
and impact on the whole energy system (production, transmission, distribution
and use of energy). A system approach means going beyond the existing divisions
between energy sources and end uses, and should therefore exploit synergies
between sectors (e.g. energy, ICT, transport, agriculture), taking advantage of
cross-sectoral complementarities and spill overs, as well as looking for
life-cycle based solutions that reduce the overall need for energy by reducing
waste and re-using and recycling materials.

Integrating actions along the energy
innovation chain and strengthen the link
with energy policy

Support for innovation cycle from basic
research to market deployment means supporting market-uptake measures to build
capacities, proofing of concepts for next generation technologies, tackling
regulatory barriers , analysing the market conditions of specific technologies
and create an investment climate and horizon conducive to more innovation
investment.

Pooling resources and using a
portfolio of financial instruments

The energy challenge requires investments
in research and innovation that are beyond the reach of a single Member State or private actor. At a time when research-driven solutions are urgently needed
and public resources are under pressure, there is a need to leverage the
individual investments of Member States to support industry with programmes
that allow ambitious and comprehensive industrial developments, and indirectly
with an increased integration of national institutional funding and research
institutions Different stages of innovation and deployment require proper
financing mechanisms. The exploitation of synergies with the EU Structural and Investments
Funds especially through national and/or regional research and innovation strategic
policy frameworks for smart specialisation[14] should be
strengthened. Other programmes can also be used for financing innovation, such
as the Connecting Europe Facility (smart grids and electricity highways) or
financing instruments such as those proposed in the Access to Risk Finance
component of Horizon 2020 or directly deployed by the European Investment Bank.
Additionally, ETS financing mechanisms similar to the "NER 300"
Programme could be envisaged in the future.

Keeping options open, while
concentrating on the most promising technologies for post 2020

Most energy technologies have long
lead-times and so investment decisions now will have repercussions well beyond
2020. As a result, the EU needs to drive the development of a spectrum of
technologies which may only reach maturity beyond 2020. The energy technology
and innovation strategy puts in place a framework to deliver economic and
viable energy technologies and solutions both in the short and long term, for
the EU and the global market. It builds on the European Commission Horizon 2020
proposal currently subject to decision under the legislative process. It will
also incorporate the results of the debate on the Green Paper on the 2030
framework for climate and energy policy.

3.2       Key developments that are
needed

Unlocking the full potential of energy
efficiency, focusing on end use consumption

Investing in energy efficiency brings
savings to consumers and allows EU industries to be less dependent on energy
prices, reduce their costs and increase their competitiveness.

Buildings, with
nearly 40% of final energy consumption, are a high priority for increasing the
rate of energy efficient renovations for existing buildings and making new
buildings nearly zero-energy ones. New building materials, designs for
integrating renewables into buildings, and new concepts and business models for
energy efficient building renovation, need to be developed and demonstrated. These
need to be supported by convergence between national and regional regulatory
approaches to reduce administrative burdens, establish standard methodologies
to measure the energy performance of buildings, and enable the single market.

The development and uptake of innovations which
substantially reduce the energy costs of industry must be prioritised, in
particular for energy intensive industries and SMEs (e.g. the use of industrial
insulation throughout Europe would reduce annual energy consumption by 4%).
This includes support for developing skills to grasp energy efficiency savings
in industry through training energy auditors and energy managers.

Delivering competitive solutions for
a clean, sustainable, secure and efficient energy system

Innovations that ensure the flexibility
and security of the European energy system will lower the costs of the
whole energy infrastructure and prepare it for taking up much larger amounts of
renewable energy. Electricity storage technologies will be important at
transmission and distribution level.

Innovations are needed to ensure the
continuity of electricity supply and rationalise demand for infrastructures
through cost-effective balancing of renewable electricity, at local level
through demand response and flexibility and at transmission level through
innovation in long distance electricity transport to enable balancing between
multiple renewable energy source locations, for example, for linking offshore
wind.

Technologies that enable active consumer
participation will allow energy efficiency improvements in networks, making
more use of ICT. Innovation in distribution grids and the development of a
market environment that empowers consumers, while ensuring adequate protection
of the vulnerable ones, to profit from the best price and energy conditions and
to produce and sell their own energy.

Whilst a number of technologies have been
successfully developed and brought to the market (onshore wind and solar
photovoltaic) thanks to deployment support, an open and flexible approach to
further development of a portfolio of cost-effective and
sustainable energy options is needed. Other promising renewable energy fields
include floating and other deep-sea offshore wind, ocean energy, advances in
concentrated solar power and novel photovoltaic applications. Further focus on research
into heating and cooling technologies, hydrogen and fuel cells technologies is
needed. Innovation is also required in new materials, key enabling technologies
such as ICT, nanotechnology, micro and nano-electronics, photonics,
biotechnology and advanced manufacturing processes routes. The International Thermonuclear
Experimental Reactor (ITER)-project[15]
is a core of the EU's long-term research for fusion energy.

Technological development is needed to support
safe operation of nuclear systems, development of sustainable solutions for the
management of radioactive waste, and nuclear competences. This should
focus on the safety of existing nuclear plants, particularly in view of the
extension of operating lifetimes, as well as the safety of future nuclear
systems. Research must continue in the field of long-term solutions for the
management of radioactive waste in Europe through development of geological
disposal. These efforts should be accompanied by multidisciplinary research on
the risks of low doses of radiation. Next generation nuclear fission reactors
such as "Generation IV" systems are the potential long term nuclear
energy options.

Deliver sustainable alternative fuels to
the European transport fuel mix, in line with the alternative
fuels strategy[16] for the long-term
substitution of oil as energy source for all modes of transport, .This requires
targeted development and cost reduction of the fuels (in particular advanced
biofuels, bio-methane and hydrogen) and transport application technologies.

Fostering innovation in real
environments and through a market driven framework

A particular focus is needed on cities
which use far more energy than they are able to produce. Further integration
and optimisation of the energy, information and transport flows at the level of
districts, cities and communities is needed This is the premise of the Smart
Cities and Communities European Innovation Partnership[17]:
demonstrating commercial-scale smart urban solutions based on the use of ICT in
the energy and transport sectors that can deliver cost effective solutions in
European urban areas.

Market uptake measures are
needed in the roll-out of all innovative energy technologies to allow scaling
up investments in supply chains and to support policy implementation for grids,
renewable energy and energy efficiency tackling non-technological barriers, including:

·
building the capacity of market actors
and public authorities to introduce effective policies and measures, which draw
technologies into the market. This includes continuous development of
practitioners (e.g. skills developments for technicians, engineers);

·
supporting the development and take-up of
innovative financing solutions for renewable energy and energy
efficiency, including financing for their deployment.

National and regional innovation strategies
need to play a critical role in fostering innovation in real environments. They
should be mobilised to support research and innovation capacities build-up and to
accelerate the exploitation and dissemination of research and innovation
results into the market, with particular attention to creating an innovation-friendly
business environment for SMEs and regional and local industry including
improving access to risk finance.

4.           IMPLEMENTING THE ENERGY TECHNOLOGY AND
INNOVATION STRATEGY

The SET Plan remains the core instrument to
deliver on the challenges addressed above. It provides the reference point for
EU, national, regional and private investments in energy research and
innovation.

However, the SET Plan also needs
reinforcing, to respond to the new challenges and to better consolidate research
and innovation capacity and resources across Europe. For
this purpose, the following changes are proposed:

·
To address energy system and innovation chain
integration, an Integrated Roadmap should be developed, under
the guidance of the SET Plan Steering Group, incorporating the key principles
and measures identified in this Communication. This Integrated Roadmap should
consolidate the (up dated) technology roadmaps of the SET Plan while retaining
the technology specificities; it should cover the entire research and
innovation chain from basic research to demonstration and support for market
roll-out; and it should identify clear roles and tasks for the various
stakeholders such as the EERA, the EIIs, the EIT, relevant European PPPs and
other stakeholders such as universities, investors and financiers while
promoting synergies and interactions between them. The first Integrated Roadmap
should be developed by the end of 2013.

·
Based on the Integrated Roadmap, the Member States and the Commission should develop an Action Plan that lays down
coordinated and/or joint investments by individual Member States, between
Member States and with the EU. These investments should go beyond grant programmes
and include financial engineering instruments and procurements. The Action Plan
will follow a flexible approach and contain different modes of implementation
such as alignment of Member States and EC funding on priorities identified in
the integrated roadmap and joint investments between Member States or/and with
the European Union. It should cover institutional funding and research
capacities of EERA. It should be developed by mid-2014 and be regularly up dated
and supported by network(s) of funding bodies.

·
A robust reporting system based on the Strategic
Energy Technologies Information System (SETIS) of the SET Plan would monitor
the implementation of the Integrated Roadmap and the Action Plan. Drawing on
the data supplied by Member States, reporting on progress should be made
annually to allow assessment of the impact on energy policy objectives and a
better orientation of EU and national support.

·
A coordination structure should be
established under the Steering Group of the SET Plan to promote investments in
research and innovation on energy efficiency. This should cover the relevant EU
Public and Private Partnerships in this area, the Smart Cities and Communities
European Innovation Partnership and other initiatives to facilitate market
rollout. This structure should be composed of the research community, industry
and market actors, public authorities and financiers.

The membership, operation and mandate of
the SET Plan Steering Group may therefore need to be strengthened to
address the challenge of developing the Integrated Roadmap.

Likewise, the European Industrial
Initiatives and associated European Technology Platforms need to adjust
their mandate, structure and participation including through a stronger
industrial component to update their Technology Roadmaps and to contribute to
the Integrated Roadmap. Emerging technologies and new developments need to be
addressed in particular storage and ocean energy linking to the Blue Growth
strategy. At the same time, the European Energy Research Alliance needs
to further integrate its research capacities and to increase the market/commercial
impact of its results, in close collaboration with the European
Industrial Initiatives.

In all these structures, new stakeholders
need to be brought in to address non-technological innovation and the removal
of regulatory, financial, market and behavioural barriers thus improving market
preparedness. This includes local actors, SMEs, ICT, regulators, network
operators, financiers and consumers.

The external dimension should strengthen the EU's excellence and attractiveness as a research
partner. International R&D cooperation in line with the International
Cooperation Strategy[18] and under Horizon 2020
should be focused on those key energy research and innovation challenges to
which it can bring added value and benefits for the EU. The external dimension
of energy policy, including the bilateral Energy Dialogues[19]
and the Science and Technology Cooperation Agreements concluded by the
Commission with third partner countries, should be implemented in a coordinated
and mutually reinforcing way. The United Nations Framework Convention on Climate Change
(UNFCCC), which provides an international framework for climate and energy
technologies, is also an important partner. With its Technology Mechanism, the
global market for technology transfer to emerging and developing countries is
expected to grow

Countries like the US, Japan and China are
initiating and implementing ambitious low-carbon programmes, which represent
significant research and innovation cooperation opportunities for the European
research sector and market opportunities for industry, for instance on smart
grids, fuel cell and hydrogen, renewable energy or nuclear safety and nuclear
fusion. Multilateral cooperation between the EU, US and Japan on critical raw materials for energy must continue. The potential of solar energy
should be further exploited in cooperation with the Mediterranean Partner
Countries.

5.           CONCLUSIONS

The EU energy technology and innovation
strategy is an integral part of the EU energy policy. As such, it must
complement the existing regulatory measures, ensure that the EU is at the
forefront of innovation in international energy markets, as well as address the
challenges posed by the current economic situation. It must contribute to
strengthening our energy cost-competitiveness and reliability of supply. In
this communication, the Commission has set out its strategy to ensure that the
EU continues to have a world-class technology and innovation sector to tackle
the challenges for 2020 and beyond.

To support this approach, the Commission:

·
will:

·
ensure the development, together with the SET
Plan stakeholders, of an Integrated Roadmap around the priorities identified in
the EU Energy technology and innovation strategy by the end of 2013.

·
define, together with the Member States, an
Action Plan of joint and individual investments in support of the Integrated
Roadmap by mid 2014.

·
strengthen together with the Member States the reporting
system for the monitoring of the Integrated Roadmap and the Action Plan based
on the Strategic Energy Technologies Information System (SETIS) of the SET
Plan.

·
invite, together with the Member States in the
context of the Steering Group, the European Industrial Initiatives and
associated European Technology Platforms to adjust their mandate, structure and
participation to update their Technology Roadmaps and to contribute to the
Integrated Roadmap.

·
establish a coordination structure, under the
Steering Group of the SET Plan, to promote investments in research and
innovation on energy efficiency

·
calls on the European Parliament and the Council
to:

–
reaffirm their support to the SET Plan as part
of Europe's Energy and Climate Change policies and its reinforcement to energy
technology and innovation development as set out in this Communication

–
endorse the proposed key principles and
developments needed for energy technology and innovation across the EU;

–
support the alignment of EU, national, regional
and private resources to this integrated research and innovation approach;

·
invites Member States and regions to support the
implementation of the Integrated Roadmap and the Action Plan through:

–
enhanced coordination of their energy research
and innovation programmes as well as through the use of EU Structural and
Investment funds and of EU ETS auctioning revenues;

–
increased collaboration through joint actions
and clusters on projects with a European added value;;

–
further integration of national institutional
funding and research capacities through the European Energy Research Alliance.

–
put in place support for faster market roll-out
of sustainable energy technologies.

[1]               as stated in the Communication on SET Plan in 2007
(COM (2007) 723) and in the Communication on Investing in low carbon technologies
in 2009 (COM (2009) 519)

[2]               The SET Plan Steering Group, composed of EU Member
States, is mandated to conceive joint actions and make resource available for
the implementation of the SET Plan. The EIIs are based on the European
Technology Platforms, and propose Technology Roadmaps to align the efforts of
the EU, Member States and industry to achieve common goals. The EERA groups the
leading EU energy research establishments and is mandated to implement joint
programmes through the sharing of national capacities in Europe. The Smart Cities and Communities European Innovation Partnership started as the energy
efficiency component of the SET Plan and now integrates at the level of cities
and communities real scale applications of energy, transport and ICT innovative
solutions. The Commission’s Strategic Energy Technologies Information System
(SETIS) is led and coordinated by EC Joint Research Centre (JRC)

[3]               SEC(2011) 1609 - Commission staff working document "Materials
Roadmap Enabling Low Carbon Energy Technologies"

[4]               (COM (2009) 519) has estimated that €8 billion per
year are needed to effectively move forward the SET-Plan actions

[5]               For nuclear sector the spending regards Euratom

[6]               Staff Working Paper, Technology Assessment Figure 3.2

[7]               1 €/kW for turnkey 100 kW
systems by 2030 (expressed in 2011 prices, excluding VAT)

[8]               JRC calculations based on a 23% capacity factor,
which is the 2011 average figure for Europe

[9]               The market replication ELENA Facility was launched by
the Commission and the European Investment Bank (EIB) in December 2009 to
support investments in energy efficiency and renewable energy projects. Run by
the EIB, KfW, CEB and EBRD, the ELENA Facility is funded through the European
Commission’s IEE Programme.

[10]             JRC/SETIS SET Plan Review is available at: http://setis.ec.europa.eu/set-plan-implementation/set-plan-review-2010-2012

[11]             Public consultation full report is available at: http://ec.europa.eu/energy/technology/consultations/20130315_technology_innovation_en.htm

[12]             “Ex-ante evaluation of a successor of the ‘Intelligent
Energy- Europe II’ (2007-2013)”, available at: http://ec.europa.eu/energy/intelligent/files/doc/2011_iee2_programme_ex_ante_en.pdf

[13]             Available at:
http://ec.europa.eu/research/evaluations/pdf/archive/other_reports_studies_and_documents/eval_fuel_cell_hydro_report_2011.pdf

[14]             In the proposal for 2014-2020 Regional Policy, Member States or regions are required to develop such strategies

[15]             developed jointly by Japan, China, India, South-Korea, Russia, the US and the EU.

[16]             COM(2013) 17 final

[17]             COM(2012) 4701 final

[18]             COM(2012) 497 final

[19]             COM(2011) 539 final